UTM security company eSoft has sold off its hardware business unit to independent investors, setting up what it left as a new outfit, zvelo.
Confusingly, the sold-off company will now be called eSoft, and will carry on selling the company’s InstaGate, ThreatWall, ThreatPaks and SoftPak Director products. Meanwhile, zvelo (no capitalisation on the ‘z’) will focus on the other side of the old business, the SiteFilter database web filtering system.
Even more confusingly, the eSoft investors will retain shares in zvelo, a company their cash will be now be used to build.
It’s an unorthodox move that will leave some scratching their heads but it no doubt makes sense on some level of accounting. Selling and developing UTM appliances under a brand name is a very different job to licensing a database security filtering technology through OEMs.
The sum of money paid for the eSoft brand name and products has not been disclosed by it is understood that the company is growing successfully.
"There was an inherent channel conflict between the two business units. Many of the web filtering database OEM partners and prospects perceived that the UTM business was a direct or indirect competitor to their own similar offerings," read a statement from zvelo's CEO, Jeff Finn.
In the long run, this could compensate form having to build awareness of a company nobody has yet heard of, zvelo.
“The UTM business will benefit from the EAL investments in sales and marketing, while zvelo receives the capital needed to scale the SiteFilter business to accommodate the significant growth being experienced. Additionally, zvelo can now focus exclusively on the SiteFilter OEM business,” said Finn.
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